LME Nickel

The LME primary nickel 3-month price decreased nearly 8% over the course of April. While prices showed strength early in the year into March, prices faltered and began to trade sideways.

Source: MetalMiner analysis of FastMarkets

More recently, however, prices appear on a declining trend, which could indicate a pricing correction, rather than a shift in trend.

Source: MetalMiner analysis of FastMarkets

However, with negative volume still high — as indicated on the weekly chart of LME nickel prices with trading volume shown along the bottom — the correction remains in progress.

China’s Economic Performance Matters for Prices

The present global economic outlook could be characterized as uncertain in the face of ongoing trade talks between the U.S. and China.

After much press early in the year over China’s slower rate of growth, with forecasts shifted downward at the start of the year, the FXI — an index of large-cap Chinese companies — surprised the market with a show of strength.

The U.S. Economy Grew in Q1; Some Sectors Lagged Behind

Economic indicators continue to fluctuate into 2019, for both the U.S. and China.

For example, while Q1 growth appeared stronger than expected in the U.S., construction spending and new home starts showed weakness in March, while new auto sales slowed this year. China’s performance remains mixed, with auto sales also weak there.

Domestic Stainless Steel Market

This month, the 304/304L-Coil and 316/316L-Coil NAS Surcharges dropped to $0.63 and $0.92 per pound, respectively, from $0.64/pound and $0.93/pound at the beginning of April.